|
Greek prices and basis have been reduced
sharply.
The serious need for cash flow on behalf of
several ginners (especially the defaulters) in combination with the lack of
demand for our crop has squeezed a lot our prices and brought, in some cases,
special offers that are valid only for immediate payment and shipment. Due to
the well known problems of our economy, banks are not able of supporting
ginners as they used to do in the past and therefore many ginning firms or
cooperatives are obliged to lower seriously their offers.
As a result during the week several new
business were reported ranging between 82-88 usc/lb FOT depending on quality
and shipments. In addition few ginners preferred to sell on call at basis of
about 400-500 off March hoping that the market will give them an opportunity to
fix at better levels. It is true that so far the on call contracts have given
better prices compared to the fix ones. Buyers were international merchant who
are trying to take advantage of this correction and sell to Far East and as
usual few Turkish spinners.
Even though the usd is getting favorable for
ginners these price levels are well below their production cost. There is a
belief in our market that serious losses of current season will not be easily over
passed and this may change our ginning sector radically.
Calculating a tolerance of 3% the status of our
crop is as follows:
CROP
|
11 / 12
|
|
|
PRODUCTION
|
290.000
|
|
|
SALES / EXPORTS
|
90.000
|
|
|
CONSUMPTION
|
15.000
|
|
|
BALANCE FOR EXPORTS
|
185.000
|
|
|
Kind regards,
Yiannis Papadogiannis
|
